Average Daily Volume
3.91M
Fund Overview
The Vanguard Intermediate-Term Treasury ETF (VGIT) is designed to provide investors with exposure to U.S. Treasury securities with maturities between 3 and 10 years. This ETF offers a cost-effective way to invest in a diversified portfolio of intermediate-term government bonds, which are considered among the safest fixed-income investments due to their backing by the U.S. government. VGIT is ideal for investors seeking steady income with lower volatility compared to longer-term bonds, while still offering higher yields than short-term Treasuries. The fund is passively managed and seeks to track the performance of the Bloomberg U.S. Treasury 3-10 Year Bond Index.
- Asset Class
-
Bond
- Industry
-
Treasury Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.11 %
- Currency Hedged
-
No
- Portfolio Turnover
-
52 %
- Dividend Date
-
Why Invest in the VGIT ETF?
Potential Benefits
- Provides exposure to U.S. Treasury securities, which are backed by the full faith and credit of the U.S. government, offering high credit quality.
- Lower interest rate risk compared to long-term Treasury ETFs, while still offering higher yields than short-term Treasuries.
- Low expense ratio of 0.04%, making it one of the most cost-efficient options in its category.
- Highly liquid, with tight bid-ask spreads, facilitating easy entry and exit for investors.
- Diversified portfolio of intermediate-term bonds, reducing single-security risk.
Potential Risks
- Interest rate risk: Rising interest rates can lead to declining bond prices, negatively impacting the fund's NAV.
- Inflation risk: Fixed coupon payments may lose purchasing power over time if inflation outpaces yields.
- Lower yield potential compared to corporate or high-yield bonds, which may not meet income needs for some investors.
- Limited capital appreciation potential compared to equities or longer-duration bonds in a declining rate environment.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-0.1%
|
+1.7%
|
-1.7%
|
-0.1%
|
0.0%
|
+0.1%
|
-0.8%
|
+0.1%
|
-2.3%
|
+0.2%
|
-
|
-
|
| 2025 |
+0.6%
|
+1.9%
|
+0.5%
|
+1.3%
|
-0.8%
|
+1.2%
|
-0.4%
|
+1.5%
|
+0.2%
|
+0.6%
|
+0.8%
|
-0.2%
|
| 2024 |
+0.3%
|
-1.5%
|
+0.5%
|
-2.0%
|
+1.4%
|
+1.0%
|
+2.4%
|
+1.2%
|
+1.1%
|
-2.4%
|
+0.7%
|
-1.1%
|
| 2023 |
+2.4%
|
-2.4%
|
+3.1%
|
+0.7%
|
-1.1%
|
-1.2%
|
-0.1%
|
-0.2%
|
-1.7%
|
-0.9%
|
+3.1%
|
+2.6%
|
| 2022 |
-1.6%
|
-0.5%
|
-3.2%
|
-2.5%
|
+0.7%
|
-0.6%
|
+1.9%
|
-2.8%
|
-3.3%
|
-0.7%
|
+2.5%
|
-0.7%
|
| 2021 |
-0.4%
|
-1.4%
|
-1.2%
|
+0.7%
|
+0.3%
|
+0.2%
|
+1.2%
|
-0.3%
|
-1.0%
|
-0.7%
|
+0.5%
|
-0.4%
|
| 2020 |
+2.2%
|
+2.1%
|
+2.9%
|
0.0%
|
+0.4%
|
+0.1%
|
+0.5%
|
-0.4%
|
+0.1%
|
-0.6%
|
+0.2%
|
0.0%
|
| 2019 |
+0.4%
|
-0.2%
|
+1.8%
|
-0.1%
|
+2.1%
|
+1.0%
|
-0.1%
|
+2.5%
|
-0.7%
|
+0.3%
|
-0.4%
|
-0.3%
|
| 2018 |
-1.5%
|
-0.5%
|
+0.7%
|
-0.9%
|
+0.8%
|
+0.1%
|
-0.3%
|
+0.7%
|
-0.8%
|
0.0%
|
+1.0%
|
+2.1%
|
| 2017 |
+0.4%
|
+0.4%
|
+0.1%
|
+0.8%
|
+0.6%
|
-0.5%
|
+0.4%
|
+0.9%
|
-0.9%
|
-0.2%
|
-0.4%
|
0.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: VGIT vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VGIT employs a passive management strategy designed to track the Bloomberg U.S. Treasury 3-10 Year Bond Index. This market-cap weighted index includes all publicly issued U.S. Treasury securities with remaining maturities between 3 and 10 years, excluding inflation-protected securities and zero-coupon bonds. The fund holds these securities in proportion to their weight in the index, providing investors with exposure to the intermediate segment of the yield curve. VGIT's portfolio is rebalanced monthly to maintain alignment with the index composition as bonds mature or new issuances occur.
Frequently Asked Questions
What is the average duration of VGIT?
VGIT currently has an average duration of approximately 5-6 years, meaning its price would be expected to fall about 5-6% for every 1% rise in interest rates.
How often does VGIT pay dividends?
VGIT pays monthly dividends, consisting of interest payments from its Treasury bond holdings.
Is VGIT a good hedge against stock market volatility?
Yes, Treasury ETFs like VGIT often perform well during equity market downturns as investors flock to safe-haven assets, though this relationship isn't guaranteed in all market conditions.
How does VGIT differ from BND?
VGIT invests exclusively in intermediate-term U.S. Treasuries, while BND is a total bond market ETF that includes corporate bonds, mortgage-backed securities, and bonds of various maturities, resulting in higher credit risk but potentially higher yields.
Industry Overview
The Vanguard Intermediate-Term Treasury ETF (VGIT) is part of the U.S. Treasury bond market, which is one of the largest and most liquid fixed-income markets globally. Intermediate-term Treasury ETFs like VGIT appeal to investors seeking a balance between yield and interest rate risk. These funds are particularly relevant in environments where investors anticipate moderate interest rate movements or seek stability amid equity market volatility. The 3-10 year maturity range offers a 'sweet spot' for many fixed-income portfolios, providing higher yields than short-term instruments while avoiding the heightened sensitivity of long-term bonds to rate changes.
Alternative Comparison
Compared to similar intermediate-term Treasury ETFs like IEF and IEI, VGIT stands out for its ultra-low expense ratio of 0.04%, significantly below the category average. While IEF tracks a slightly longer duration index (7-10 years), making it more sensitive to interest rate changes, VGIT's 3-10 year focus offers a middle ground in terms of yield and risk. Unlike some actively managed Treasury funds that may use derivatives for enhanced returns, VGIT maintains a straightforward physical replication strategy, holding actual Treasury securities for precise index tracking.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. With over $7 trillion in global assets under management, Vanguard has built a reputation for investor-friendly practices, including rock-bottom expense ratios and a client-owned structure. The company's fixed-income ETFs are widely regarded for their liquidity, transparency, and precise index tracking.
Conclusion
VGIT represents a core holding for investors seeking intermediate-term Treasury exposure with minimal cost drag. Its focus on the 3-10 year maturity range provides an attractive balance between yield and interest rate sensitivity, while Vanguard's scale and efficiency ensure tight tracking of its benchmark index. While not suitable as a high-yield investment, VGIT serves as an excellent building block for the fixed-income portion of diversified portfolios, particularly for those prioritizing capital preservation and income stability.
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